Celsius Resources Limited — Investor Presentation 2018

Aug 28, 2018

Building an Extensive Cobalt Resource in Namibia

Africa Down Under 29 August 2018

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Disclaimer

This presentation has been prepared by Celsius Resources Limited (“Celsius” or “CLA”). The information contained in this presentation is a professional opinion only and is given in good faith.

The information contained herein is confidential and proprietary to the Company and is provided to recipients on the terms and conditions set out in this disclaimer. The document, in whole or in part, is not to be distributed, copied or reproduced, in any form, without the prior written consent of the Directors of the Company.

Certain information in this presentation has been derived from third parties and though CLA has no reason to believe that it is not accurate, reliable or complete, it has not been independently audited or verified by CLA.

Any forward looking statements included in this presentation involve subjective judgement and analysis and are subject to uncertainties, risks and contingencies, many of which are outside the control of, and maybe unknown to, CLA. In particular they speak only to the date of this presentation, they assume the success of CLA’s strategies, and they are subject to significant regulatory, business, competitive and economic uncertainties and risks. Actual future events may vary materially from the forward looking statements and the assumptions on which these assumptions are based. Recipients of this presentation are cautioned not to place undue reliance on such forward looking statements.

CLA makes no representation or warranty as to the accuracy, reliability or completeness of information in this document and does not take responsibility for updating any information or correcting any errors or omissions which may become apparent after this presentation is released.

To the extent permitted by law, CLA and its officers, employees, related bodies corporate and agents disclaim all liability, direct, indirect or consequential (and whether or not arising out of the negligence, default or lack of care of CLA and/or any of its agents) for any loss or damage suffered by a recipient or other persons arising out of, or in connection with, any use or reliance on this presentation or information.

All amounts in AUD unless stated otherwise.

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Investment Highlights Extensive source of Co, Cu & Zn sulphides

BROAD MINERALISATION CONFIRMED OVER 15KM+ WITH SIGNIFICANT FURTHER POTENTIAL STRIKE

LARGE-SCALE RESOURCE

Potential for high production rate and economies of scale

SIMPLE, UNCOMPLICATED MINERALOGY

95% of current resource is sulphides and low in arsenic

Maiden JORC Resource: 112.4 Mt at 0.11% Co, 0.41% Cu & 0.43% Zn

CONVENTIONAL SULPHIDE FLOTATION WITH HIGH RECOVERIES

Conventional flotation recoveries of ~80% and demonstrated high leach extraction of >90%

POLITICALLY STABLE AND SAFE LOCATION WITH EXCELLENT INFRASTRUCTURE

Namibia is mining friendly with ample access to grid power, water and services

STRONG DEMAND FUNDAMENTALS

Future demand for cobalt, led by the looming electric vehicle and battery storage revolutions, driving prices higher

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Corporate Overview

Capital Structure

715.4M 41.9M

49.5M

96.8M

$12.4M

CTA $0.12 (fully diluted)

Shares (CLA)

Major Shareholders

Listed options: CLAO-AUD 0.01 strike

Market cap (AUD)

Unlisted options

CLA.ASX 0.12

Cash (June 30)

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7.00%
6.00%
6.12%
5.00%
5.03%
4.54%
4.00%
4.13%
3.00%
3.11% 3.08%
2.00%
1.00%
0.00%
Gecko Namibia Citicorp JP Morgan HSBC Custody Brijohn Borg Family
(Pty) Ltd Nominees P/L Nominees Nominees Nominees P/L Super Fund
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Directors and Management

• A geologist with over 20 years’ experience gained working in management, operational and project development roles in the Exploration and Mining industries

• Brendan Borg • Experience includes Rio Tinto Iron Ore, Magnis Resources Limited, IronClad Mining Limited, Managing Director Lithex Resources Limited and Sibelco Australia Limited • Director of Tempus Resources Limited (ASX:TMR) and geological consultancy Borg Geoscience Pty Ltd • A geologist with over 20 years’ experience in the international resources industry working

• Bill Oliver for both major and junior companies • Former roles include Rio Tinto, Harmony Gold, Bellamel Mining and BC Iron

• Non-Executive Chairman • Director of several ASX listed companies, including Tando Resources Limited (ASX:TNO) • Metallurgical Engineer with extensive experience in developing and operating mines in Namibia

• Pine van Wyk • Formerly with Rössing Uranium and Paladin Energy Ltd at their Langer Heinrich Uranium project as Operations Manager, taking the project from feasibility to full production

• Project Director • Currently Managing Director of the Gecko Namibia group of companies • Over 20 years’ experience in the areas of financial and executive management, accounting,

• Ranko Matic audit, business and corporate advisory • Director of a Chartered Accounting firm and a Corporate Advisory company based in Perth,

• Non-Executive Director Western Australia

• • Over 18 years’ experience in financial accounting and analysis, audit, business

• Melanie Ross and corporate advisory services in public practice, commerce and state government Company Secretary • Currently a Director of a corporate advisory company based in Perth that provides corporate and other advisory services to public listed companies

• • 20 years’ experience, developing and managing mining projects in Southern Africa,

• Edward Legg more specifically in South Africa, Zambia, and the DRC Project Development Manager • Former experience at AngloGold Ashanti/Anglo Platinum, Metorex Ltd and Vale/ARM JV in Zambia

• Director of Tempus Resources Limited (ASX:TMR) and geological consultancy Borg Geoscience Pty Ltd

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Cobalt – A commodity in demand

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Cobalt Price
USD $64,500
21 Aug ‘18
COBALT PRICE (X1,000 USD)
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Why Cobalt?

• Substantial price appreciation over the past two years to more than USD $90,000/tonne

• Battery-grade cobalt chemicals have seen greater price increases than equivalent LME metal prices

• Chinese EV manufacturers shifting towards cobalt-based lithium ion batteries

• Security and supply concerns in DRC means more diverse sources of cobalt needed

Source: InfoMine.com

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Cobalt – Best Exposure to Battery Boom?

In a 100% EV world …

demand for commodities would change by …*

incremental annual commodity demand would deplete reserves by …

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*in % of global market today

Source: UBS

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Cobalt – Market Outlook

Cobalt-containing cathode will dominate EV and Storage applications within 10 years

• Benchmark Mineral Intelligence forecasts that the use of cobalt in batteries will more than triple between 2017 and 2026 – despite the shift to lower cobalt batteries during this timeframe

• Removing cobalt from both NCA and NCM technology is not easy and presents problems: safety and cell life

• Even if nickel-cobalt-manganese (NCM) 811 cathodes takes off, overall impact would be limited

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Cathode Projections NCM 811 Adoption Rate (2026)
250,000
11%
19%
27%
8% 4%
200,000
10%
2017 52% 2025 25%
40%
150,000
29% 17% 33%
100,000
50,000
0
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Sources: Freeport Cobalt and Benchmark Mineral Intelligence

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Namibia: A Premier Mining Destination

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A politically stable jurisdiction:

• Established regulatory structure

• Strong public and governmental support for mining

• Favourable tax considerations for producing downstream products in Namibia.

Exceptional infrastructure:

• Regional capital Opuwo boasts airport and hospital

• Sealed roads from Opuwo to Windhoek and Walvis Bay Port

• 320MW hydroelectric power station at Ruacana linked to 330kV power grid

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Opuwo Project Overview 100km+ of Co-Cu prospective horizon

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owned and 5% loan-carried share with local 95% Namibian group owned by Gecko Namibia (largest shareholder) 6.12% total project area 1,470 km[2]

strike of existing resource zone ~10km

existing power lines 66kV & 33kV

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Mineralisation

Mineralisation is low in deleterious elements

• The JORC Compliant Mineral Resource estimate comprises 112.4 Mt at 0.11% Co, 0.41% Cu and 0.43% Zn – cutoff grade of 0.06% (or 600 ppm) Co

• The Mineral Resource estimate represents contained cobalt of 126,100 tonnes and consists of:

• Indicated: 72.0 Mt at 0.11% Co, 0.42% Cu and 0.41% Zn

• Inferred: 40.5 Mt at 0.12% Co, 0.41% Cu and 0.46% Zn

• Key feature of Opuwo: +95% of the Mineral Resource is comprised of the fresh sulphide ore type

• Mineralised zones are open in all directions with excellent scope for expansion with further drilling

• Mineralisation hosted in Neoproterozoic sediments of the Kaoko Belt (the western extension of the Copper Belt in DRC and Zambia)

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Typical Mineralised Zone Drill Chips
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Maiden JORC Mineral Resource Tables

Reported in April, 2018

JORC Compliant Indicated and Inferred Mineral Resource

CATEGORY	ORE TYPE	COBALT CUT- OFF (PPM)	TONNAGE (MT)	COBALT (%)	COPPER (%)	ZINC (%)	CONTAINED COBALT (T)
Indicated	Oxide	600	3.8	0.10	0.39	0.36	3,900
	Transition - Sulphide	600	1.6	0.10	0.42	0.38	1,700
	Fresh - Sulphide	600	66.5	0.11	0.42	0.41	73,700
TOTAL INDICATED		600	72.0	0.11	0.42	0.41	79,300
Inferred	Fresh - Sulphide	600	40.5	0.12	0.41	0.46	46,900
TOTAL		600	112.4	0.11	0.41	0.43	126,100

JORC Compliant Indicated and Inferred Mineral Resources at Various Cobalt Cut-off Grades

COBALT CUT-OFF (PPM)	TONNAGE (MT)	COBALT (%)	COPPER (%)	ZINC (%)	CONTAINED COBALT (T)
0	294.4	0.06	0.24	0.33	177,100
200	238.7	0.07	0.28	0.37	169,100
400	146.7	0.10	0.37	0.41	142,800
600	112.4	0.11	0.41	0.43	126,100
800	87.9	0.12	0.44	0.44	109,100
1000	66.4	0.14	0.46	0.45	89,700
1200	44.7	0.15	0.49	0.46	66,000
1400	24.6	0.16	0.50	0.47	40,000
1600	9.6	0.19	0.46	0.45	17,900
1800	5.5	0.20	0.45	0.42	10,900
2000	3.1	0.21	0.45	0.34	6,300

• Note that minor rounding errors occur in these tables.

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2017-18 Drilling

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Section Section
365, 350mE 366, 350mE
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UTM Zone 33S

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Cross Sections

Cross Sectional View – Section 365,350mE

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Cross Sectional View – Section 366,350mE

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Simple, Sulphide-Hosted Mineralogy

• Mineralisation is predominantly linnaeite (cobalt), chalcopyrite (copper) and sphalerite (zinc) plus iron sulphides (pyrite/pyrrhotite)

• Flotation testing showed up to 88% of cobalt recoverable into sulphide concentrate

• Closed circuit flotation recoveries of 80% at a concentrate grade of up to 1.5% cobalt

• Further optimisation work planned to improve recoveries and grades, and therefore the feed to the planned integrated downstream refinery

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Sulphide mineralisation in drill core
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Flotation testing on Opuwo samples
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High Leach Extraction of Cobalt, Copper & Zinc

Cobalt, Copper and Zinc Extraction:

• Employing an ~ 1% - 1.58% cobalt grade flotation concentrate, 19 different leach regimes were explored

• Extraction in the current preferred autoclave oxidative leach was approximately 93% for cobalt, 92% for copper and 100% for zinc, at a temperature of 95°C and 300 kPa oxygen pressure

• Relatively low leach extraction of iron (26%) and sulphur (41%)

• Patent application has been submitted for the process – targets preferential leaching of value metals (cobalt, copper and zinc) over iron sulphides

• Process optimisation is ongoing

• Classical processes of copper SX-EW (Solvent extraction, electrowinning) and cobalt sulphate crystallisation expected to be employed to produce downstream products

Copper Cathodes

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Large-Scale Cobalt-Copper Targets

• Aim of broader exploration in licence package is to find the potential source sulphide zone feeding the system within the project area

• Maiden JORC Mineral Resource defined over 10 km strike

• Mineralisation intersected over a 15 km zone in initial Celsius drilling, confirmed by assays

• Over 100 km of prospective strike

• Potential for additional mineralised zones adjacent and parallel to known mineralisation

• Outcrops at surface

• Low in deleterious elements (As, Cd, U)

• Cobalt present as linnaeite (Co sulphide)

• Other targets: Zn-Pb-V, Cu-Au, Cr-V, Pb-Zn-Ag

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SkyTEM Survey Completed

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EPL4351
EPL4550
EPL4346
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• Covering all known prospects at Opuwo, including DOF resource area, DOF North targets, and potential source zones for the extensive sulphide mineralisation

• 200 metre line spacing

• 6,090 line km total

• Flying complete – final data and target report due in September.

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Scoping Study Underway – Key consultants appointed Project Development Manager: Edward Legg

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Metallurgy

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Metallurgy, CAPEX/OPEX Estimates

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Mining Studies

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Resource Modelling and Estimation

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Environmental, water and social studies

Scoping Study targeted for early Q4 2018 PFS to follow

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Peer Comparison

Opuwo compares favourably to other sulphide and laterite projects

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COBALT GRADE (%)
Laterite
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COBALT METAL CONTENT (‘000 TONNES)
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Note: Excludes Kalongwe (NZC) 42,700 tonnes cobalt metal content at 0.62% cobalt grade. Bubble size represents contained cobalt

Sulphide

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Timeline and Upcoming Catalysts

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APRIL 2018 IN PROGRESS Q4 2018
Resource Extensive infill and
Maiden JORC Complete and report
expansion extension resource
Mineral Resource Project Scoping Study
drilling drilling program
Exploration of other
Commence
targets across the SkyTEM survey and
Pre-Feasibility Study
project area reporting
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• Assuming positive Scoping Study outcome

Competent Persons Statement

Information in this report relating to Exploration Results is based on information reviewed by Mr. Brendan Borg, who is a Member of the Australasian Institute of Mining and Metallurgy and Managing Director of Celsius Resources.

Mr. Borg has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Borg consents to the inclusion of the data in the form and context in which it appears. The Exploration Results are based on standard industry practices for drilling, logging, sampling, assay methods including quality assurance and quality control measure as detailed in the ASX announcements referred to in this presentation.

Information in this report relating to Mineral Resource Estimates is based on information prepared by Mr. Dexter Ferreira, who is a Member of the South African Council for Natural Scientific Professions, which is a Recognised Professional Organisation (RPO).

Mr. Ferreira is a Contract Resource Specialist for DMT Kai Batla Pty. Ltd., who act as Resource Consultants to Celsius. Mr. Ferreira has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Ferreira consents to the inclusion of the data in the form and context in which it appears.

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celsiusresources.com.au info@celsiusresources.com.au +61 8 6188 8181